Friday, October 20, 2006

Where Clinton's Deficit Reductions Came From

OpinionJournal - Featured Article: "This huge defense drawdown is also the real story behind President Clinton's ballyhooed deficit reduction. The GOP Congress gets some credit for slowing the rate of growth in domestic spending in the mid-1990s. But nearly all of the decline in government spending in the Clinton years came from defense. Only toward the end of the 1990s did the GOP Congress begin to agitate for modest defense increases, which Mr. Clinton accommodated in return for more spending on his own domestic priorities.

Sooner or later this trend had to stop, and it did with the jolt of September 11. President Bush needed to find more resources to fight the war on terror, and he has done so by increasing defense spending by a full percentage-point of GDP over his six years in office. More than half of the fiscal 2006 budget deficit of 1.9% of GDP can thus be attributed solely to this rebuilding of American defenses after the Clinton drawdown."

1 comment:

Unknown said...

They called it the peace dividend. Yeah right.